2144
THE NEW ZEALAND GAZETTE
No. 98

in respect of each type of business (other than
sharebroking) engaged in by him each such bond to be
in the sum of $20,000 or such larger figure as the Executive
may from time to time determine and such bond shall
be in favour of or assigned to the Exchange provided that
this Rule shall not apply in respect of any business where
that person is already covered by a fidelity fund covering
real estate agents or chartered accountants or by some
other fidelity fund approved for the time being by the
Executive.

24.05 Every member shall (except as provided in Rule 24.06)
pay such annual contribution being not more than $200
nor less than $50 and such additional levy not exceeding
$200 in any one year, as may be fixed by the Executive
but no member shall be required in the whole period of
his practice as a stockbroker to pay additional levies under
this rule totalling (including additional levies paid to the
Stock Exchange Association of New Zealand) more than
$1,000. No person shall be entitled to a refund of any
contributions or additional levies paid into the fund.

24.06 If at the beginning of any financial year the amount of
the fund after deducting the amount of all unpaid claims
and other liabilities outstanding is not less than $250,000,
the amount of the annual contributions payable in respect
of that year may be reduced by the Executive but nothing
herein shall be construed to limit the power of the
Executive to fix any additional levy in respect of that year.

24.07 Subject to Rule 24.09, a person claiming to be entitled
to reimbursement from the fund shall not be entitled
to receive more than $15,000 in respect of any loss suffered
as a result of the acts or defaults of any one member or
his firm.

24.08 Subject to Rule 24.09, the total amount payable out of
the fund to meet claims (as limited by Rule 24.07) arising
out of the inability of any member or his firm to meet
the financial obligation of such member or his firm shall
be limited to $200,000 or such other amount as may be
from time to time determined by the Council.

24.09 Subject to Rules 24.07 and 24.08, the Executive in its
absolute discretion shall determine the extent (if any) to
which any claim on the fund shall be met.

25.0 General
25.01 Where any dispute arises or complaint or charge is being
investigated or any decision is to be made as to which
or any of which these Rules or the regulations made
thereunder are silent, then such decision, complaint, or
charge shall be dealt with and decision made in accordance
with good sharebroking practice and where such exists in
accordance with the established custom in New Zealand.
The transaction out of which such dispute, complaint, or
charge arises or in respect of which a decision is made
shall be deemed to be a transaction to which these Rules
apply. The Council shall be the sole judge as to what is
good sharebroking practice in accordance with this Rule
and where any ambiguity arises as to the meaning and
effect of these Rules or the regulations made thereunder,
shall be the sole judge as to the interpretation thereof.

26.0 Miscellaneous
26.01 Odd lot dealers shall be appointed to deal with sales of
parcels of shares not amounting to a marketable parcel
as defined by or under these Rules. The operation of
dealings in odd lots shall be prescribed by the regulations.

26.02 Where existing shareholders are given the right to apply
for new shares, notes, debentures, or other securities
offered to shareholders prior to delivery of shares sold for
cash, members shall take such action as may be necessary
or prescribed by the regulations to protect the rights of
the buyers in respect of the securities so offered.

26.03 Members shall take such action as may be necessary or
shall be prescribed by the regulations to protect the rights
of buyers in respect of entitlements to dividends or interest
and the Exchange may by regulation or otherwise lay down
Rules for determining the respective rights of buyers and
sellers in regard to dividends, interest or capital
distributions and in regard to settlement procedures

26.04 relating to matters affected by this Rule.

26.05 The Exchange may by regulation or otherwise make such
provision as it thinks fit for dealing with the rights and
obligations of buyers and sellers with regard to calls made
on shares the subject of sale.

26.06 Securities transfers as defined by the Securities Transfer
Act 1977 must be used for all transactions in New Zealand
registered securities and the Exchange may determine, by
regulation or otherwise, the procedures to be adopted with
regard to the completion and processing of all such
transfers.

27.0 Common Seal
27.01 The Exchange shall have a Common Seal which shall be
kept in the custody of the Executive Director and shall
only be used by the authority of a resolution of the
Executive and every instrument to which the Common
Seal is affixed shall be signed by a member of the Executive
and countersigned by the Executive Director or a second
member of the Executive.

28.0 Financial
28.01 Subject to any directions which may be given by the
Council from time to time, the Executive shall have power
to invest the funds of the Exchange in such manner as it
shall think fit.

28.02 The Exchange shall have power to borrow or raise or
secure the payment of money in such manner as the
Executive may think fit and may for that purpose mortgage
charge or otherwise encumber all or any of the assets of
the Exchange.

28.03 The control of the funds of the Exchange shall be vested
in the Executive.

28.04 The Executive may permit regional exchanges to control,
invest and use such part of the funds of the Exchange as
it thinks fit.

29.0 Amendment to Rules
29.01 These Rules or any of them may be altered, by way of
rescission, amendment, addition, or otherwise by a
resolution passed by a three-fourths majority of the votes
cast at an annual or special meeting of the Council.

29.02 No resolution for alteration of these Rules or any of them
shall be submitted to a meeting of the Council unless the
same has been proposed by the President or by the
Executive or by the delegate of a regional exchange
pursuant to a resolution passed by members thereof and
unless notice in writing of intention to submit such
resolution shall have been given to the Executive Director
within sufficient time to enable him to give the notice
referred to in Rule 29.03.

29.03 14 days’ notice in writing of details of the proposed
alteration shall be given by the Executive Director to
members of the Council and to each regional exchange
and each regional exchange shall before the meeting of
the Council at which the resolution is to be submitted
convene a meeting of its members to consider and vote
thereon. Each such meeting of a regional exchange shall
be deemed to be a remit meeting for purposes of these
Rules.

29.04 No proposed alteration if rejected by the Council shall
without the consent of the Executive be reconsidered by
the Council for 6 calendar months.

29.05 Where a Rule is altered, no further alteration to the Rule
shall, without the consent of the Executive, be considered
by the Council for 6 calendar months.

P. G. MILLEN,
Clerk of the Executive Council.

BY AUTHORITY: P. D. HASSELBERG, GOVERNMENT PRINTER, WELLINGTON, NEW ZEALAND—1983

Price $1.05c
963F—83PT